Suppose You Observe a Spot Exchange Rate of $1

question 37

Multiple Choice

Suppose you observe a spot exchange rate of $1.0500/€.If interest rates are 3 percent APR in the U.S.and 5 percent APR in the euro zone,what is the no-arbitrage 1-year forward rate?

• A)€1.0704/$
• B)$1.0704/€
• C)€1.0300/$
• D)$1.0300/€

---

Definitions:

Price of Health Care

The cost associated with obtaining medical services, treatments, or products.

NADH

Nicotinamide adenine dinucleotide (NADH) is a coenzyme found in all living cells, involved in redox reactions and energy production through cellular respiration.

Glycolysis

The metabolic pathway that breaks down glucose into pyruvate, releasing energy and pyruvic acid, occurring in the cytoplasm of cells.

Niacin

Also known as Vitamin B3, it is essential for converting food into energy, maintaining skin health, and supporting the nervous and digestive systems.